The following is a summary of the Data Storage Corporation (DTST) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Data Storage Corporation reported a 20% increase in Q1 revenue, reaching $8.2 million.

• Gross profit increased by 42%, with the margin growing from 30% to 36%.

• The company achieved profitability with $11.9 million in cash and marketable securities, and no long-term debt.

• Annual recurring revenue (ARR) of approximately $18 million was reported.

• Recurring revenue margins typically range around 50%, but can fluctuate based on equipment sales and professional services.

• Data Storage Corporation reported Q1 EBITDA of $1.2 million for their CloudFirst segment, boasting a 30% EBITDA margin.

Business Progress:

• The company consolidated its flagship subsidiary into CloudFirst to optimize operations and improve resource allocation.

• New contracts were signed including an expanded contract with a multinational telecommunications company and a cloud migration contract with a division of one of the largest US insurance companies.

• An international expansion saw the opening of a CloudFirst Office in London.

• Strategies are being explored for potential acquisitions to support growth, with a focus on companies valued between $10M- $15M.

• There's a planned deployment of new equipment in September to cater to international clients, expected to increase international revenue by Q4.

• Multiple term sheets have been issued over the last six months indicating the company's continued interest in M&A opportunities for sustained long-term profitability.

More details: Data Storage IR

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.